Page 13 - FSUOGM Week 08 2022

FSUOGM NEWS IN BRIEF FSUOGM

Russia's Novatek gas major state-owned power generation companies Transneft, and before a potential share
split, expect a dividend per share (DPS)
Termoelectrica and CET Nord, which in
buys back more shares turn paid their bills to Moldovagaz. The of RUB13,071 for 2022, making 8.8%
money was transferred from the state
dividend yield (with a possible downside
Russian gas major Novatek reported buying budget to the two state-owned companies as to 8.3%). Still, VTBC treats the update
back 0.88mn shares and global depository a subsidy for household consumption. as mixed as revenues guidance missed
receipts (GDRs) from February 14 to 18, for expectations.
a total $18mn at an average price of $206.5
per GDR. Since the approval of its new European consumers
buyback in December 2021, Novatek has Russian NGL production up
purchased 0.97mn GDRs, spending a total receive about 27 mcm of
of $49mn. 3% in 2021
As noted by bne IntelliNews after the Azerbaijani gas daily
buyback launched by Russia's largest bank Production of natural gas liquids in Russia
Sber (Sberbank), more Russian equity Russian state pipeline operator Transneft grew by 3% in 2021 to 11.73mn tonnes,
names could buy their own shares on the guides for a 12% year-on-year growth data published by the energy ministry’s
low market, similarly to the 2020 buyback in revenues in 2021 to RUB1 trillion CDU-TEK database shows, thanks chiefly
wave. The trend is likely to continue as ($12.6bn) and a 3% increase for 2022, to higher natural gas extraction.
Russian equity enters a second sell-off wave Sova Capital following on an investor and Leading gas producers Gazprom and
amid spike of military tensions in Eastern analyst call held by the company. Novatek both increased NGL production
Ukraine. As followed by bne IntelliNews, in 2021 during the year, although this was partially
"In general, we view the buyback as Transneft confirmed the dividend strategy offset by lower supplies by Sibur and
supportive for the company’s share price, after being seen by the analysts as turning Lukoil. Deliveries of NGLs to the domestic
and we could see an increase in purchases into a strong dividend investment play. The market rose by 362,600 tonnes last year to
in the current environment. The company’s company also intended to carry out a share 11.59mn tonnes.
GDRs are trading at $174/GDR, which is split, seen as positive for the name.
close to the level seen in late February 2021 In the latest update, the board of
during the pandemic trough," Sova Capital Transneft said it supported the idea of Kazakh oil and gas
commented, while maintaining a Buy call paying interim payments, starting with
on Novatek's shares. 2022. The company would pay out one condensate production up
EBITDA of Novatek, Russia's largest dividend for 2021, and the next dividend is
liquefied natural gas (LNG) exporter, soared expected to be paid for 1H22. 12% y/y in January
in 2021 by 90%, landing at RUB748bn The company also continued to
($9.9bn), the company reported on elaborate its ESG agena, with over 85% of Kazakhstan's January oil and gas condensate
February 16, attributing the result to Transneft’s operations being electrified. output jumped 12.1% from a year earlier
soaring oil and gas prices. The company claims to be a global to 7.9mn tonnes, official data showed on
leader in minimum per-unit electricity February 18.
consumption in crude oil transportation Oil output operations in the first month
Moldovagaz manages to and is looking for ways to use renewables of the year remained largely undisrupted
despite the civil unrest that was experienced
for in-house generation, and non-core
pay February monthly gas operations. nationwide.
Production included a 14.1% y/y rise in
Notably, Transneft was ranked second in
bill to Gazprom on time the rating of readiness for energy transition crude oil output to 6.714mn tonnes. Gas
among the largest Russian companies by
condensate production rose 1.9% y/y to
Moldovan natural gas transport and Monitoring of Sustainable Development, 1.153mn tonnes.
distribution company Moldovagaz along with gold miner Polyus Gold and Petrol production in the month increased
transferred in full to Gazprom the payment Russian Grids grid operator. by only 0.1% y/y to 410,000 tonnes.
for the natural gas supplied in the first half Following the guidance, Sova Capital
of February 2022 by the end of February 21, analysts estimate the 2021 dividend at
thus avoiding a disruption of the natural gas RUB12,002 per preferred share, or an 8% Pakistan and Russia hold
supplies. yield, with an upside seen for the forecast.
The value of the last transfer amounted Sova reiterated a Buy call on Transneft talks on Kazakhstan-
to $9.256mn and it was the final tranche shares.
of the $51.256mn amount, which is the "We think 2022 could be an interesting Pakistan pipeline
50% advance payment for the estimated year for Transneft if the company is able
consumption for the month of February. to conduct a stock split, as this would Pakistan’s Energy Minister Hammad
The company's management thanked the attract more retail investors, thus adding Azhar has announced that the South
consumers, who paid their natural gas bills liquidity. In addition, the prospect of an Asian country has been holding talks with
ahead of time. interim dividend should also improve the Russia on the potential construction of a
In paying the gas bill, Moldovagaz company’s investment case," Sova Capital Kazakhstan-Pakistan gas pipeline.
was helped by a government decision believes. The pipeline would enable Pakistan to
approved on February 19, when the state VTB Capital (VTBC) analysts welcome import cheaper gas. Not much is known
disbursed MDL292mn (€14.5mn) to the the "ongoing ESG development" of about the project aside from Russia’s

Week 08 23•February•2022 www. NEWSBASE .com P13